alternative lenders

The New York manager acquired the property at 444 South Flower at a UCC auction in January. 

National and regional banks are expected to reduce commercial real estate lending, which opens the door for the private markets. 

The 10-year, fixed-rate financing, arranged by Walker & Dunlop, is interest only for its entire term.

JLL Capital Markets arranged the $220m loan, of which about $65.8m is comprised of preferred equity. 

The Los Angeles-based manager is targeting $3bn for its Real Estate Debt Fund IV.

JLL arranged the financing for Five Star Development to finish the $2bn project development.

The opportunity is driven in part by what is going on in the debt markets, with financing more difficult to line up for sponsors than in years past. 

However, some institutions believe equity deals still are more attractive than debt investments in multiple respects.

Higher interest rates could also stall efforts to refinance maturing debt.

Cities including New York, Los Angeles, Portland, Seattle, Pittsburgh and Washington, DC, have adopted strategies that will move them toward a carbon-neutral future.